SEBI Settlement Proceedings Regulations 2018
SEBI introduced its first comprehensive settlement framework, allowing entities to settle enforcement proceedings by paying a negotiated amount determined through a discretionary process.
The framework processed 1,576 applications over three years, but 40% were rejected or withdrawn and only 568 resulted in settlement.
A SEBI study found proposed settlement amounts averaged 8 times higher than final penalties, deterring entities from seeking settlements.
The 2026 regulations replace this framework, addressing its unpredictability with a formula-based approach and a fast-track route for small cases.
